Two pioneers of the UK fund of hedge funds industry are preparing to leave Hermes BPK ahead of a review of its future by asset management veteran Rufus Warner.

Greg Knott is stepping down as co-chief investment officer at the UK fund of hedge funds group majority-owned by Hermes Fund Managers, itself owned by BT pension scheme.

Individuals familiar with the situation said the firm’s other investment co-head Mark Barker is negotiating terms for his departure.

According to a Hermes spokeswoman, Knott will leave Hermes BPK in June. She said: “Greg Knott has decided to leave the business to pursue other interests. Greg has made a significant contribution to the firm and he leaves with our thanks and best wishes.”

According to Companies House, asset management veteran Rufus Warner became a Hermes BPK director this week. He was appointed to review the future direction of the Hermes BPK business by Hermes Fund Managers chief executive Saker Nusseibeh this month.

However, funds of hedge funds subsequently went out of fashion, as consultants objected to the fees they were charging and developed their own multi-manager models. Following the credit crisis, hedge fund performance also deteriorated.

In a statement accompanying its results that year Hermes said: “The BPK funds were unable to overcome the limitations of the funds within their investable universe.”

Neither Hermes Fund Managers nor Rufus Warner would confirm the future status of BPK, although friends say it is likely develop new products while keeping a close eye on its bottom line. Knott and Barker were not available to comment.